Rising inflation among key risks to Indian equity market: Morgan Stanley

Morgan Stanley's base-case June 2019 target for the S&P BSE Sensex remains unchanged at 36,000 levels

A likely rise in crude oil prices that could put pressure on growth, an election cycle that brings its own set of uncertainties and an upward pressure on inflation from food price hikes that sees the Reserve Bank of India (RBI) hike rates further are among the top risks to the Indian equities, according to a recent Morgan Stanley India Equity Strategy Almanac: The Uphill Climb.

On Monday, the wholesale price inflation (WPI) for June rose to a four-and-a-half year high of 5.77 per cent, rising from 4.43 per cent recorded in May 2018. Inflation in vegetables jumped